Cowry Asset’s chief lauds SEC’s appointments, demutualisation

The recent appointments at the Securities and Exchange Commission (SEC) and the ongoing efforts on demutualisation of the Nigerian Stock Exchange (NSE) will engender a more inclusive and globally competitive Nigerian capital market.

Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, said the recent confirmation of Mr. Munir Gwarzo as the substantive director general of SEC would lead to consolidation of the improvements witnessed under him as the acting director general.

According to him, the confirmation of Gwarzo was much expected by market operators as he had earned the confidence of the stakeholders in the capital market.

He noted that capital market operators had earlier recommended the confirmation of Gwarzo to President Goodluck Jonathan based on Gwarzo’s pedigree and performance since he assumed office in acting capacity.

“We have seen timely response to issues, prompt feedback and approvals since Mr. Gwarzo assumed office. We are also witnessing an improvement in the work environment in SEC and a more open relationship with market operators and other organisations under SEC supervision such as Nigerian Stock Exchange,” Chukwu said.

He added that the appointment of Mr. Peter Obi, the former Governor of Anambra State, former chairman of Fidelity Bank and member of President’s Economic Management Team would clearly provide a fillip to the ongoing efforts to transform the Nigerian capital market to global standard through the capital market roadmap.

According to him, Obi’s experience in the private sector and his sterling records will avail the board of SEC with uncommon direction required for the next level of market development.

Chukwu also commended the ongoing efforts on the demutualisation of the NSE noting that this will bring the ownership and governance structure of the Exchange in tandem with global stock exchanges.

“A demutualised Nigerian Stock Exchange would make investing on instruments listed on the Exchange more attractive to both local and foreign investors as the Exchange will then adopt the best global practices and certainly become more transparent. It is one of the key market development initiatives required to internationalise the Nigerian capital market,” Chukwu said.

He expressed support for the rule by the SEC limiting trade groups’ equity interest in the demutualised Exchange to 20 per cent and individuals’ interest to five per cent, pointing out that this is necessary to allow for broad ownership structure and avoid situations where a dominant trade group or individual would have controlling interest in such a key capital market institution.